The Company's EBITDA was US$699 million, 126% higher than 2Q20

SÃO PAULO, Nov. 10, 2020 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for 3Q20.

3Q20 HIGHLIGHTS:

Braskem - Consolidated:

• The Company's recurring EBITDA was US$699 million , 126% higher than 2Q20, mainly explained by (i) the better spreads of PE in Brazil , PP in the United States and PE in Mexico and (ii) an increase in sales volume in Brazil and in the United States due to the recovery in demand for resins in the Brazilian market and PP in North America . In relation to the same period of the previous year, the Company's recurring EBITDA in US dollars was 69% higher, due to (i) the better spreads of PE and PVC in Brazil , PP in Europe and PE in Mexico and (ii) the increase in sales volume in Brazil , United States and Mexico . In Brazilian Real, the recurring EBITDA was R$3,765 million , 127% and 129% higher than 2Q20 and 3Q19, respectively, due to the depreciation of the Brazilian Real against the US dollar.
• In the quarter and in line with our strategy of prioritizing sales to the Brazilian market, the Company exceeded 1,050 tons of resins sold in the domestic market, a historical quarterly record of resins sales in Brazil .
• In 3Q20, the Company recorded a net loss of R$1,413 million mainly due to the additional provision for the geological event in Alagoas in the amount of R$3,562 million and the impact of the exchange rate variation on the financial result given the depreciation against the US dollar on net exposure of US$2,679 million .
• The corporate leverage, measured by the net debt/EBITDA ratio in US dollars was 4.98x.
• Year-to-date, the overall accident frequency rate with and without lost time (CAF + SAF) was 0.92 (events/1MM HH), 72% below the industry average.
• On a year to date base, the recordable and lost-time injury frequency rate stood at 0.88 (events / 1MM HH), which is 72% below the industry average.
• In September, Braskem completed the commissioning process following the applicable safety standards and began commercial production of PP at its newest plant in the United States , with a production capacity of 450,000 tons per year.
• In October, Braskem, as a member of the CFOs Task Force, an initiative promoted by the UN Global Pact, committed to implementing the CFOs Principles for the integration of sustainable development goals ("SDG") in the financial and investment management of the Company, which will involve defining the goals related to Braskem's commitments to the SDG.
• In November, based on its Sustainable Development strategy ("SDS") and in line with the SD goals of the United Nations for 2030 and the Paris Agreement on Climate Change, Braskem announced its commitment to expand its efforts to achieve the goals related to mitigate climate change and eliminating plastic waste. On regard of mitigating climate change, the Company pursues to achieve carbon neutrality by 2050 and to reduce its carbon emission by 15% by 2030. On the eliminating plastic waste front, the Company pursues to (i) expand its I'm green™ portfolio aiming to include 300,000 tons of thermoplastic resins and chemicals with recycled content by 2025; and, by 2030, 1 million of such product; and (ii) by 2030, work to divert 1.5 million tons of plastic waste away from incineration, landfills, or the environment.

Brazil :

• Brazil's EBITDA was US$529 million ( R$2,850 million ), 148% and 94% higher than 2Q20 and 3Q19, respectively, representing 70% of the Company's consolidated segments EBITDA. The increase in EBITDA is mainly explained by the higher sales volumes of resins and chemicals in the Brazilian market and by better spreads in PE.
• Due to the recovery in demand for resins in the Brazilian market, the utilization rate of the crackers in Brazil normalized and, in the third quarter, was 87%, which represented an increase compared to 2Q20 (+17 p.p.) and 3Q19 (+2 p.p.).

United States and Europe :

• EBITDA in the United States and Europe was US$133 million ( R$720 million ), 223% and 47% higher than 2Q20 and 3Q19, respectively, representing 18% of the Company's consolidated segments EBITDA. The performance in the quarter is mainly explained by the higher sales volume in the United States , due to the increase in the country's industrial activity.
• In this scenario, the operation rate of our industrial units in the United States normalized and the average of the third quarter was 99%, an increase compared to 2Q20 (+9 p.p.) and 3Q19 (+8 p.p.).
• In October, the production of our newest PP plant in the United States (Delta) was 36,000 tons, close to the monthly production capacity of the plant of around 38,000 tons.

Mexico :

• Mexico's EBITDA was US$97 million ( R$524 million ), in line with 2Q20 and 3T19, representing 13% of the Company's consolidated segments EBITDA.
• In the quarter, Braskem Idesa imported approximately 42,000 tons (average of 8,000 barrels daily) of ethane from the United States , in order to complement the ethane supplied by Pemex, which represented 13% of the PE utilization rate, which was 84% in the quarter. Regarding the expected Fast Track capacity of 12,800 barrels daily, it reached 10,600 barrels per day in July, or approximately 83% of the expected capacity.

The full earnings release is available on the Company's IR website: www.braskem-ri.com.br/home-en

Braskem will host conference calls to discuss its Results THURSDAY, November 12 at 12:30 a.m. US ET.

Additional information may be obtained from the Investor Relations Department at +55 11 3576-9531 or braskem-ri@braskem.com.br .

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SOURCE Braskem S.A.